A Modern Airline Business Plan

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Total Length: 5271 words ( 18 double-spaced pages)

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EXECUTIVE SUMMARY

Yolo Airlines is a low-cost airline carrier that conducts its airline operations in the United States. The business operations are based on a low-cost structure and the airline is able to generate high returns as a result of the unique business model and efficacy in its strategic operation. The vision of the company is to become the most superior low-cost carrier airline in the United States market that provides not only a distinctive experience to all consumers but at the cost-effective rates for the products and services rendered. On the other hand, the mission of the company is to provide consumers with a cost effective product offering in terms of flights to different regions in the United States but at the same time offer them with services that match their high lifestyle in terms of comfort and also convenience. Unlike other airlines in the industry that utilize a hub and spoke business model, Yolo airlines make use of the point to point business model. Consequently, the company is able to offer the consumer base with quicker, more convenient and suitable flights as compared to majority of its rivals in the market. The target market of the airline comprises of fun-loving young urban professionals made up of upwardly mobile business professionals travelling to attend business meetings or unwind after a weeklong of work. The company faces intense competition in the market. The two key rivals of Yolo Airlines include Jet Blue Airlines and Virgin Airlines.

The Airline would be fully operational with a load factor of 50%. This is a lower break-even point than other companies have. The company’s ROI is likely to grow going forward as the company gains a footing in the industry. However, the company is likely to beat most established names in the airline industry. Whereas JetBlue continues to be a renowned Airline insofar as inimitable and attractive customer service is concerned, Virgin America has a resilient selling point which could also entreaty to our customers as well. There are a number of risks that the airline carrier faces in its operations. One of them includes terrorism, with airplanes being bombed and also others being held hostage in preceding periods. Secondly, there are aspects such as flight liabilities and also passenger safety. Weather patterns are not always predictable and have an impact on how planes are flown and therefore the company has to guarantee passenger safety. To guarantee this, the staffs are comprehensively trained on how to deal with a wide range of situations. Fuel costs are another significant risk factor owing to their fluctuations.

NON-DISCLOSURE STATEMENT

This business plan non-disclosure agreement is created and operational on April 26, 2018 by and between Client Name and Yolo Airlines.

Recitals

WHEREAS, Client Name has created an extensive business plan for Yolo Airlines, which comprises of particular confidential, trusted and copyrighted data and information;

WHEREAS, Client Name wishes to make the Business Plan created accessible to the beneficiary for the purpose of

1. Purpose 1

2. Purpose 2

And

WHEREAS, the beneficiary comes to an understanding to appraise, scrutinize, or attain the Business Plan solely for the purposes delineated above, and to otherwise sustain the confidentiality of that Business Plan in accordance to the terms and conditions of this Agreement.

NOW THEREFORE, in deliberation and contemplation of the abovementioned narrations and the shared assurances and benefits enclosed in this, the parties hereby come to an agreement as follows:

1. CONFIDENTIAL INFORMATION

Client name will make available a printed copy of the Business Plan to the beneficiary within 14 days of the signing of this particular agreement. In combination with the distribution and provision of the Business Plan, Client Name may reveal certain of its confidential and trademarked data information to the beneficiary. Patented data and information shall comprise all data, provisions, merchandises, know-how, computer software package, disclaimers, guidebooks, software, marketing plans, financial information together with other information revealed or surrendered to, verbally, in lettering, or by any other means, to the beneficiary by the Client Name. Any private information that is deliberated upon verbally shall be identified as such within 14 days of disclosure. Nothing herein shall necessitate client name to reveal any of its information.

BUSINESS INTRODUCTION

Yolo Airlines is a low-cost airline carrier with its operations centered in the United States. The company has been in operation in the market for a short span of time. The company has entered this niche market with the main objective of being differentiated from the prevailing companies in the market due to its lifestyle market.

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In actual fact, its name YOLO stands for “You Only Live Once”, which is meant to impel the young consumers and also frequent business travel to go the extra mile and enjoy the lifestyle package that the company offers its consumers. In contrast to majority of the airlines operating in the American market that utilize the hub and spoke business model, Yolo airlines has differentiated itself and utilizes the point to point model. This is one of the key competitive advantages of the company owing to the reason that it increases the flexibility of the company and also the flight frequency. The company is not only able to travel through the routes that generate more revenue but are also more tractable in the routes that they take.

MISSION

Our vision is to be the biggest and most superior low-cost carrier airline in the United States market that provides not only a distinctive experience to all consumers but at the cost-effective rates for the products and services rendered.

The mission of the company is:

· To accomplish the lowest cost so that all consumers can fly with Yolo Airlines

· To sustain the topmost quality level for the products, espousing cutting-edge technology and diminish cost as well as augment levels of service and product offerings

· Develop our brand to be acknowledged internationally

· Guarantee the most ideal work setting for personnel and all other members

STRATEGY

The business operations of Yolo Airlines is centered on a low-cost structure and accomplishes high returns on investment owing to its distinctive business model and an efficacious operational strategy. The business model of Yolo Airlines is founded on the Point-to-Point service model, which is unique and distinct from the hub and spoke business model that is utilized by majority airline carriers in the industry. The manner in which Yolo airlines employs this particular business model provides the company with competitive advantages over its market rivals and cost savings. Imperatively, Yolo Airlines gains a significant advantage for the reason that through the enforcement of the business plan, it is able to enable consumers to fly a huge number of both direct and non-stop air flights. As a result, the company is able to offer the consumer base with faster, more expedient and opportune flights in comparison with majority of its rivals in the market. Furthermore, Yolo has started making use of airplanes and airliners that facilitates the increase in the capacity levels of consumers in addition to being cost-effective in the provision of non-stop flights. This is a major business prospect for Yolo Airlines for the reason that it increases its consumer base and leads to greater revenues and profits generated.

The strategy employed by Yolo Airlines has enabled the company to accomplish lower maintenance and repair costs. It is imperative to note that the airline industry is considerably capital intensive and costly for all parties. In addition, some of the cost savings attained for the company encompasses decreased training expense. This is in the sense that Yolo Airlines is not enforced to make use of mechanics in the fixation of new airlines or conducting the training and teaching of pilots at every turn. Another aspect of the strategy employed by Yolo Airlines encompasses conducting business operations in considerably minor, inexpensive, and opportunely situated airports. This implies that the company does not have to incur high costs for fuel and flying from the hub to different locations. In addition, Yolo Airlines has made a substantial investment in incessant advancements and enhancements in fuel efficiency. This increases the level of cost savings attained by the firm.

MARKET OPPORTUNITY

Over the past decade or so, low-cost carriers have developed progressively more to become a prevalent substitute to full-service airlines, with the price set for product offerings becoming a determining factor for the carriers. Low cost carriers also hold a projected market share of 30 percent in the general United States airline market, fundamentally controlled by key airlines like JetBlue Airways and Southwest Airlines. The rise in flight capacity buttresses and underlines the actuality that low cost traffic has considerably increased in the past 10 years, which is expected to continue in the forthcoming periods. Furthermore, the extensive espousal of ticketless travel together with the progressively more internet distribution and bandwidth continues to….....

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